Page 737 - Week 03 - Thursday, 22 March 1990

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Distribution of Federal Funds

MR JENSEN: Mr Speaker, my question is directed to Mr Collaery in his capacity as Attorney-General. I refer the Attorney-General to an article appearing in today's Melbourne Age headed, "Ansett won big price cut on use of RAAF jets". Could the Attorney confirm to the Assembly whether he has sought legal advice on this and associated matters, particularly as it relates to the division of Federal funds collected partially from the ACT taxpayers and its effect on the distribution of those funds to the ACT fiscus?

MR COLLAERY: I thank Mr Jensen for the question. Mr Speaker, I have had a number of queries about this issue. I should inform the house that on 16 January this year - before a Federal election was called - I asked the Law Office to examine the legality of the proposed release scheme for the airlines by the Hawke Government. I further asked the Law Office to determine whether the grants or waivers given were lawful, whether there was an arguable case that the payments lacked a lawful basis, whether procedures employed to make lawful payments were irregular. I asked them to determine whether the ACT Government, given its parlous financial state, as a result of the Federal situation, had any right of action by way of injunction or declaration to restrain further payments.

The interim advice I have received from the Chief Solicitor of the ACT is that the Audit Act 1901 may be applicable. That gives a responsible Minister the power to write off or waive funds subject to certain statutory rules. Those are that for payments exceeding $50,000 no Minister shall waive a payment unless he has considered a report concerning the proposed waiver furnished to him by a committee consisting of the Secretary to the Department of Finance, the Secretary to the Department of Administrative Services and a Comptroller-General of Customs.

Our inquiries are still continuing. Clearly, the lawful basis of these payments and other interrelated waivers and grants of the type referred to in the article Mr Jensen mentioned are the subject of further inquiries by my office to determine whether correct procedures were followed. We note, however, that no announcement and no response has yet come from the Hawke Government on these expenditures of funds sorely needed in this Territory.

Mr Speaker - ABC Radio

MRS GRASSBY: Mr Speaker, my question is to you. I refer to the answer to Mr Berry's question on 22 February 1990 concerning the improper comments you made on ABC radio


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